Argus Rent Roll Question
All,
I recently moved from the debt side to an acquisitions role. I am having to go in and update leases in a portfolio of office properties in Argus Enterprise. The point of the exercise is to update leases that are set to roll by year end. My question is, for tenants that renewed, should I create a brand new lease or just manipulate the one already entered? One thing that is throwing me off is some leases that renewed got a new base stop year and some did not. I was thinking, for those leases that kept their old base year, just manipulating those leases. And creating a new lease for those that got a new base year. Thoughts?
ARGUS DCF the correct way to do would have been to have the tenant RENEW and then put in new lease data. Not sure if AE operates the same. Also depends on which reports you want to use and how that data will be manipulated. By leaving the old lease term in there it looks like the lease is incredibly long. If someone came along and didn't know you did this, they may mistakenly think it was a 20 year lease or whatever instead of 10 + 10.
In Argus DCF, selecting RENEW will cause the program to pull in the the renewal information from the MLA. Using your suggestion, would I need to create a new MLA with the correct information from the new lease for each individual lease that has a renewal? Appreciate the feedback.
Use "OPTION"
My bad, I'm rusty, and BRE is right it would be "Option"
Totally depends on how you want the argus run to calculate the renewal. If it is a contract renewal (you have a contracted deal, which will start the day after the current lease ends), you can select contract renewal in the rent roll tab and than enter the renewal lease.
If you want it to use the renewal probabilities, select the market renewal (or specific renewal option which you created for this tenant or group of tenants). Just remember though that doing this will use a weighted average for TIs, LCs, downtime, etc.
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